Dundee Precious to buy UK's Adriatic Metals in US$1.25 billion deal
Dundee Precious Metals DPM-T will acquire UK's Adriatic Metals in a cash-and-stock deal valued at US$1.25 billion, the companies said on Friday, marking the latest in a string of foreign takeovers of UK firms.
The proposed transaction comes amid a growing wave of acquisitions targeting UK-based firms, with more than 30 bids exceeding 100 million pounds announced so far this year, up from 26 during the same period last year.
Toronto-listed Dundee is offering 268 pence per Adriatic share in a cash-and-stock deal, consisting of 93 pence in cash and 0.1590 new Dundee shares for each Adriatic share, a 50.5 per cent premium to Adriatic's closing price on May 19.
Dundee said the combined group will strengthen operations through an 'attractive production, mineral reserve and mineral resource base and a compelling metal mix.'
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'The Vareš is a logical fit with our portfolio, and adds near-term production growth and mine life, a highly prospective land package, and cash flow diversification,' Dundee CEO David Rae said in a statement.
Dundee, a gold miner with operations in Bulgaria and Namibia, is acquiring London-listed Adriatic, which is currently developing the Vares silver project in Bosnia and Herzegovina.
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